TRENDS

2017 Global Risk Study: Insurance Trends

The insurance industry is undergoing fundamental change, with significant consequences for the risk function. Disruptive forces—from medical breakthroughs to technological innovations—are reshaping society and business, while new approaches to data, the workforce, partners and customers are changing the way insurers operate.

Harnessing digital innovation: Some of the most transformative technologies, such as AI, cloud and big data are being explored by insurers, though few risk teams have fully exploited these technologies. Cost pressures are leading risk teams to employ smart technologies to improve efficiency.

Balancing old skills and new: New tools and processes change how risk teams interact with the business, alliances, regulators, customers and other external stakeholders, and call for new skills and a better balance of attributes across teams. Risk teams of the future will need more diverse skills and experience with careful and skillful management of these to build a risk-driven business.

Integrating across the business: Insurers must find a balance between centralization and decentralization of risk management. Where it’s possible, there is a trend towards greater centralization of risk management at the group level, with further centralization expected across all risk types and business lines in two years’ time.